Japanese equity funds witnessed the largest ever weekly outflows, as investors positioned defensively ahead of Sunday's snap election.
According to the Financial Times, investors withdrew $4.4bn from Japanese equity funds in the week to 18 October, the largest net outflows since research group EPFR Global started tracking data in 2002. Despite Japanese equity markets reaching fresh record highs in anticipation of a Prime Minister Shinzo Abe victory, investors chose to take a defensive stance in the week leading up to the vote. Polls show Abe's decision to call an election in September may pay off, with a survey published by the Nikkei newspaper last Friday predicting his LDP party will win between 210 and 306 of the ...
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